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BB&T's 100% Financing, No PMI "CHIP" Loan

Since the mortgage crisis started in the Spring of 2008, 100% financing loan programs have become few and far between.  Here are a few details of a relatively new program that BB&T is offering, it seems like a great program for qualifying buyers.

The program is called Community Homeownership Incentive Program or "CHIP" for short.  Qualifying buyers can get up to 100% financing (NO MONEY DOWN) with NO PMI (Private Mortgage Insurance). 

 

  • Loan amounts up to $417,000.00
  • Maximum income limits:   97% financing - $66,500.00, 100% financing - $53,200.00 household income.  No income limits in HUD designated underserved areas. HUD designated underserved areas can be
  • Ratios:  33% housing, 41% total debt.  Can go up to 45% with 720 credit score and no other debt
  • Term:  30 year fixed only
  • Homebuyer Education:  Required
  • Can use approved down payment assistance program or qualified gift
  • Property:  Single family residence, townhouse or condo
  • Minimum buyer contribution:  $500.00
  • Reserves:  97% financing - one month PITI, 100% financing - two months PITI

To determine if a property is located in a HUD designated underserved area, which eliminates the income limit for this program, take the following steps:

Buyer Credit Qualifications:

  • No 30 day delinquencies within the past 12 months.  Derogatory credit must be explained.  Collections may not have to be paid, but judgments must be paid off.
  • Student loan payments will not be counted in debt as long as payment will be deferred at least 36 months from loan closing.
  • For 100% financing, minimum credit score must be 680.
  • Non-traditional credit sources can be utilized.  Must be opened and maintained for 12 months.  Minimum number is three sources of non-traditional credit.

Of course... Loans are subject to approval & this loan program can be modified or discontinued at anytime without notice.

Contact me anytime for more information about this program and for all of your real estate needs.  I look forward to helping you find your new home!

Cheryl Powell- Remax Executive Realty

Comment balloon 18 commentsCheryl Powell - The Powell Team • May 09 2009 11:32AM
BB&T's 100% Financing, No PMI "CHIP" Loan
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Since the mortgage crisis started in the Spring of 2008, 100% financing loan programs have become few and far between. Here are a few details of a relatively new program that BB&T is offering, it seems like a great program for qualifying buyers… more